It will all play out at tax time- BUT I don't believe you will owe anything in an IRA At this time the K-1 is an unknown BUT its very rare for the bottom line to exceed the limit where you owe. Have owned MANY mlps for many years- no tax ever. The negative K-1s always offset the positive K-1s when you add them together.
Greatbarf , many are wasting time worrying about what they have no control over. The past two months whacked me hard how about yourself?
I still have not received anything from my brokers as to which option to select what if i do nothing which of the 3 options do i get?
Its going to be a "sale" either way. Either an actual sale before the conversion, or a "deemed" sale at the time of the conversion. The tax consequences will be the same in both cases. Sit back and enjoy the ride.
I was thinking she still had time to sell it if the tax consequences would be bad. Then she could just buy back into KMI after the merger. Thanks for the reply.
Nobody is going to get all KMI shares for their KMP units. Everyone will get cash and shares in amounts that are very close to the mixed election. This is due to the "proration" provision. Why is it so important to calculate in advance what the liability in this IRA might be? It won't be that bad, whatever it is. Not compared to the $100,000 of KMI stock being received.
Wait until the K-1 is received by the IRA. See what the UBTI amount is. There will be plenty of discussion on the yahoo message boards around tax time. Sell some shares of KMI stock to raise funds to pay the UBTI tax.
Don't worry about paying any gift tax. There's a $5,340,000 lifetime gift tax exemption. Just gift whatever amount you want (over $14,000) and file a gift tax return, but apply the excess over $14,000 against your $5 million exemption.
We are on a KMP board not KMI. My question relates to KMP, not KMI. I am fully aware of the relationship between KMP, KMI and EPB. KMP and EPB drive KMI's price not the other way around. What was driving KMP's price so high on that particular day?
and votes to have all KMP shares converted to KMI, what would be the taxable amount in the K-1? I tried to read through all the forms on the KMP website but I am not a cpa. This is my mother's situation and I don't know what to tell her to do. When she voted I assumed there would be no taxes since it is in an IRA.
I meant $14,000 not shares as that is the limit of what you can gift to anyone in a year without incurring gift taxes.
that made no sense at all to sell.
The correct direction would be to wait and see if it hits $100+ then "perhaps" sell.
You lost out.
Sentiment: Strong Buy
What are the advantages/disadvantages of selling KMR and KMP now VS selling after the merger. Also any opinions on selling KMR and KMP vs receiving KMI shares. I have substantial positions and profits in both KMR and KMP . They were purchased 7 years ago by my now deceased father in law and are currently held in his trust account,